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Medicare Drug Plan Premiums Are Changing in 2027 - Here’s What Retirees Could Pay

The federal government has projected the average cost for Part D premiums.

By Chris Kissell , Edited by Laura Hohenstein

Updated Oct. 28, 2026

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Millions of seniors enrolled in Medicare Part D should expect their premium costs to change in 2027.

The Centers for Medicare & Medicaid Services (CMS) has projected new costs for prescription drug coverage that begin on Jan. 1.

Find out how your premium is likely to change next year and learn some easy ways to pocket more cash as you shop for coverage during the upcoming annual Medicare open enrollment period.

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How Medicare Part D premiums might change in 2027

CMS has projected the average total monthly premium for standalone Part D plans to increase slightly next year, from $35.06 a month in 2026 to $36 in 2027.

This tiny uptick of less than $12 for the year is likely to come as a relief to seniors who are weary of paying soaring costs for everything from gasoline to groceries.

Even better, the cost of Part D premiums within Medicare Advantage plans is expected to plunge by 38%, from $11.32 a month in 2026 to just $7 in 2027.

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Why Medicare Part D premiums are holding steady or falling

The news that next year's premium costs are expected to remain in check is welcome and a bit surprising. A special government program that subsidized Part D premium costs ended in August, leaving many Medicare beneficiaries to worry about higher premiums next year.

However, the CMS projections appear to put those fears to rest for at least some Part D beneficiaries. In a recent statement, CMS noted that Part D costs are "returning to normal market conditions."

In addition, CMS Administrator Dr. Mehmet Oz said a reduction in "handouts" to big health insurance companies is keeping premiums lower.

How to save on Medicare Part D costs in 2027

Next year, millions of Medicare beneficiaries are likely to pay only modestly more for Medicare Part D than they did in 2026. Some may pay even less than they did this year.

But that doesn't mean everyone is going to save. The CMS projections are for average costs, and some people should expect to pay more than the average.

Premium costs vary by plan and location. Your income also impacts how much you pay in Medicare premiums next year. Shopping around for coverage during Medicare's annual open enrollment period is arguably the single most effective way to keep your costs down.

With that in mind, here are some things you should look for when comparing 2027 prescription drug options during the upcoming open enrollment, which runs from Oct. 15 through Dec. 7.

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Monthly premium

Your monthly premium is the one Part D cost you truly can't avoid even if you take no prescription drugs during 2027. Private insurance companies offer Part D plans, and they all set their own individual premium costs.

So, shop around during open enrollment and make sure the plan you choose comes with an affordable premium.

Deductible

A deductible is the cost that you must pay for care before your health insurance coverage kicks in.

Medicare drug plans are not allowed to have a deductible that exceeds $700 annually in 2027. Some drug plans offer lower deductibles, and some have no deductible at all.

This is another reason why shopping around and comparing prices really pays off.

Out-of-pocket cap

There is a maximum that you pay for prescription drug coverage each year. In 2027, the out-of-pocket maximum is $2,400, up from $2,100 in 2026.

As you shop, keep this maximum in mind and know that your costs are not going to exceed $2,400 for covered drugs.

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Co-payment and co-insurance

A co-payment is a standardized fee that you pay when you get a prescription. Co-insurance is the percentage of a drug's cost that you must pay out of pocket.

The amount you pay for co-payments and co-insurance varies from plan to plan, so look closely at these costs as you shop.

How to get help paying for Medicare Part D in 2027

If you struggle to pay Part D costs, the government has several options that help make prescription drugs more affordable.

Extra Help is a federal program that helps cover some of the cost of prescription drugs for those who have lower incomes.

State Pharmaceutical Assistance Programs (SPAP) also help cover the cost of premiums and cost-sharing.

Finally, some pharmaceutical companies offer assistance with the cost of prescription medications. The CMS website offers more information about all of these programs.

Bottom line

Millions of Medicare beneficiaries are likely to save on the cost of their Part D premium in 2027. But other beneficiaries might not enjoy such savings.

And even those who are lucky enough to see lower premiums could pay more in other costs if they don't shop carefully during the upcoming open enrollment period.

Open enrollment kicks off on Oct. 15 and runs through Dec. 7. Now is the time to gather a list of the medications you take and check up on your financial health as you prepare to shop for the right 2027 plan.

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